China cuts tax on low-emissions fuel

China's Ministry of Finance has slashed value-added tax on dimethyl ether (DME), a cleaner-burning fuel used in diesel and petrol engines.The government cut VAT on DME from 17% to 13% on Tuesday, Reuters reported.

The adjustment removes the gap between the VAT rate levied on DME and other fuels. State media cited experts saying it would boost DME

China has introduced DME-fuelled buses into cities, the report said, with Shanghai putting more than 90 into operation this year.

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